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The SEC does not have a statutory definition of what constitutes "adequately disclose". So let's look at the cases you cited and collect the various elements that if present would have been sufficient to constitute adequate disclosure:
Disclose the fact that the promoter (publisher) is compensated and what is the Compensation itself (if possibly list prices and numbers)
Disclose the promoter's intention to Sell and generate a profit off the stock that is being reviewed
Avoid puffery (e.g explosive opportunity). If you have to describe a good opportunity borrow from the language of traditional financial media (e.g. comparative research indicates that this stock represents a good opportunity)
Disclose if your actions were different than your recommendations
Consider disclosing the third party identity that hired you to promote the stock (this is a tricky one because most third parties don't want to be disclosed). At the very least disclose that there is a third party.
It's important to note that the SEC has consistently held that the practice of scalping where a promoter sells their own shares directly into their paid promotion or buy alert is illegal though to date all cases involved a general disclaimer
With each case that settles and with each complaint the picture becomes a little bit clearer and I commend you on taking a very unique and transparent approach. From a legal perspective it will be interesting to see if you get any attention from the SEC. Of course I hope that the open approach will positively impress the regulators
That advice was pretty bad. I already run a large newsletter group and if I didn't know what I was doing and actually just took your advice I'd probably go to jail or at least get sued and banned from the industry by the SEC. You made it sound like all these things like disclosing the 3rd party are optional, but it's illegal to not disclose the third party and it actually says so in one of the links I sent.
You've asked me to verify that you are correct. Under the terms of this site unfortunately I cannot render legal advice and cannot verify whether your actions are correct or not. I only permitted to provide you with general guidelines as to the actions that need to be taken. You have provided a fairly comprehensive review of the the cases to date. One of your questions concerned whether you ought to disclose the share price and quantity. As noted, I cannot advise you specifically rather I have to use general language. So generally speaking to the extent possible the purchase price and quantity of shares ought to be disclosed.
If you have any additional specific questions I will answer them to the extent permitted by this site and I trust you will change your rating.
I do highly recommend that you consult with a securities attorney who would be able to render specific legal advice. I have several colleauges that I can recommend though they charge upward of $700 an hour.
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